A wave of crypto exchange-traded funds (ETFs) is poised to crash onto U.S. financial markets this autumn, potentially transforming investor access to digital assets. While some view this influx as a pivotal moment for mainstream adoption, others caution that not all ETFs will weather the storm.
The Floodgates Open
“The crypto ETF floodgates are set to open this fall, and investors will soon be swimming in these products,” says Nate Geraci, president of NovaDius Wealth Management. With more than 90 crypto ETF applications currently under review by the U.S. Securities and Exchange Commission (SEC), Geraci expects most to gain approval—assuming they meet the regulatory criteria. Yet, he emphasizes that the ultimate arbiters will be the investors themselves.
Geraci describes the ETF market as a “meritocracy,” where investors use their dollars to decide which products will flourish. He’s confident that the appetite for diverse and accessible investment options is already robust, possibly underestimated. “Given the initial response to futures-based and 1940 Act-structured Solana and XRP ETFs, I believe demand for 1933 Act spot products in these crypto assets is being severely underestimated—much like we saw with spot bitcoin and ether ETFs,” Geraci notes. This aligns with findings that US ETFs are now a major source of Bitcoin spot trading volume, highlighting the growing influence of these financial products.
BlackRock’s iShares Bitcoin Trust (IBIT), for instance, has set a high bar, emerging as the most successful ETF launch in history, currently holding nearly $85 billion worth of bitcoin. Ether ETFs, initially overshadowed by their bitcoin counterparts, have since surged in popularity, pulling in almost $10 billion since July according to Bloomberg Intelligence’s James Seyffart. This trend is further supported by recent data showing that Ethereum outpaces Bitcoin as ETF inflows top $1.2 billion amid market lull.
A Competitive Landscape
The impending influx of crypto ETFs is expected to create a fiercely competitive environment. Seyffart, an ETF analyst, predicts a flurry of product launches over the next 12 to 18 months, with “hundreds of crypto-related ETP launches” anticipated. However, he remains skeptical about the long-term viability of many offerings. “If all of those filings ultimately launch, there will undoubtedly be some closures within the next few years,” Seyffart explains. He warns that expectations for altcoin ETFs should be tempered, as they are unlikely to replicate the success of bitcoin ETFs.
Seyffart sees the market entering a “test phase,” where issuers will introduce a variety of products, experimenting to see what resonates with investors. He points out that not every new crypto ETF will be worth the gamble, even if associated with popular blockchain projects. “If demand doesn’t show up, those products will close,” he states matter-of-factly.
Institutional Embrace
Behind the burgeoning interest in crypto ETFs is a broader institutional acceptance of digital currencies. Since the SEC gave the green light to spot bitcoin and ether ETFs last year, asset managers have been eager to launch new products tied to Solana (SOL), XRP, dogecoin (DOGE), and more. These ETFs offer a regulated avenue for investors to enter the crypto market without the complexities of setting up wallets or managing private keys.
Yet, with opportunity comes responsibility. Investors must be discerning in their choices, as not all offerings will be viable in the long run. Geraci underscores this point: “In the end, investors will decide which products make sense and which don’t. That’s how the ETF market has always worked.”
As the crypto ETF landscape evolves, the upcoming months will be telling. Will investors embrace the diversity of options, or will the market self-correct, leaving only the most robust funds standing? One thing is certain: as the doors swing open this fall, the digital asset market is on the cusp of a transformative chapter.
Source
This article is based on: Crypto ETF Surge Could Reshape Market, but Many Products May Fail
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
